Medicaid expansion in Louisiana
- Medicaid expansion took effect June 1, 2016
- New eligibility and enrollment system allows for real-time eligibility determinations based on state and federal data
- Work requirement was considered by lawmakers in 2018, but did not pass
- But legislation to create a workforce training pilot program was enacted in 2018
of Federal Poverty Level
As of September 2016, more than 305,000 Louisiana adults had already gained coverage under the expanded eligibility guidelines. By November 2018, that number had grown to 481,500. Of those who have enrolled in Healthy Louisiana under the expanded guidelines:
- More than 257,000 have received preventive healthcare or new patient services
- More than 56,000 women have been screened for breast cancer, and breast cancer was diagnosed in 561 of those women
- More than 31,000 have been screened for colon cancer; more than 10,000 of them have had colon polyps removed, averting colon cancer; 426 have been diagnosed with colon cancer
- Nearly 11,000 people have been newly diagnosed with diabetes, and are now receiving treatment
- Nearly 30,000 people have been newly diagnosed with hypertension, and are now receiving treatment
New Medicaid eligibility and enrollment system launched in November 2018
In November 2018, Louisiana rolled out a new Medicaid eligibility and enrollment that allows for real-time eligibility determinations using data from state and federal systems, instead of relying on manual eligibility determinations. And enrollees will no longer receive phone calls from Louisiana Medicaid when their coverage is up for renewal; notices and requests for additional information will be sent by mail instead, and enrollees will need to provide updated information in a timely manner in order to avoid termination of their coverage.
Dr. Rebekah Gee, Louisiana Department of Health & Human Services Secretary, explained that the transition from the old system to the new system “is like upgrading from an old flip-style cellphone to a modern smartphone. The new system will better ensure eligibility by connecting with state and federal databases to automatically provide more information about income, disability, citizenship status, and other eligibility requirements.” Gee cautioned, however, that there could be some hiccups with the transition to the new system, and asked for patience as everyone learns their way around it.
Lawmakers considered a Medicaid work requirement in 2018, but legislation didn’t pass
In early 2018, Louisiana Governor, John Bel Edwards announced that his administration was “actively working” on ideas for implementing a “reasonable” work requirement for the state’s Medicaid program. Bel Edwards, a Democrat, was the prime mover in the state’s expansion of Medicaid in 2016.
In 2017, Louisiana enacted S.R.163, which requires the Louisiana Department of Health to provide monthly data to lawmakers on a variety of Medicaid-related metrics, including the total number of Medicaid expansion enrollees and the number of Medicaid expansion enrollees who have earned income.
According to H.B.3, which was introduced in early 2018, the state had reported that as of December 2017, enrollment in Medicaid expansion stood at 453,000 people, and “fewer than 284,000” of those individuals had earned income (even before S.R.163 was enacted, the Louisiana Department of Health had been providing detailed, up-to-date reports about Medicaid expansion enrollment, which are available to the public but do not include data about income or the work status of enrollees).
The Louisiana House passed H.B.3 in March, but the bill did not advance in the Senate. It called for a Medicaid work requirement, but had been amended to ensure that people wouldn’t lose access to Medicaid if they didn’t comply with the work requirement.
S.B.77, which was introduced in the Senate in 2018 but did not progress to a vote, would have directed the state to seek a waiver from CMS, by January 2019, in order to implement a work requirement for Louisiana Medicaid expansion. The work requirement would have applied to people ages 19 to 64, but would have exempted pregnant women and people with disabilities, along with other populations that would have been detailed in the waiver proposal.
H.B.46, which was introduced in the House in 2018 but did not progress to a vote, would also have directed the state to seek a waiver from CMS in order to implement a work requirement for non-disabled adults age 19 to 64 who are enrolled in Medicaid and not caring for a child under the age of one year. Enrollees would have had to work, volunteer, or participate in other suitable community engagement activities for at least 20 hours per week in order to maintain Medicaid coverage. Exemptions would have been available for various populations, including pregnant women, people with disabilities, and people enrolled in substance abuse treatment.
Louisiana enacted legislation in 2018 to create a workforce training program
H.B.735, which passed 97-1 in the House and 32-0 in the Senate, was signed into law in May and took effect in August 2018. The law directs the state to create a workforce training and education pilot program for “improving employment opportunities and promoting workforce advancement” among people receiving public assistance, including Medicaid. Enrollment in the pilot program is voluntary. Enrollees will receive assistance with job training, job referral, career planning, apprenticeships and other job skills development.
Louisiana was the 31st state to expand Medicaid
On January 12, 2016, newly-inaugurated Governor John Bel Edwards signed his first executive order to start the process of Medicaid expansion in Louisiana. Edwards took office the day before, and had promised that Medicaid expansion would be one of his first actions as Governor.
Prior to June 1, 2016, Medicaid eligibility for adults in Louisiana was unchanged from 2013, and childless adults were ineligible for coverage, regardless of how low their incomes were. That created a coverage gap, since people with income below the poverty level cannot obtain subsidies in the exchange, so they had no realistic access to health coverage until Medicaid was expanded.
SNAP data used for auto-enrollment
About 105,000 of the newly-eligible individuals were expected to be auto-enrolled under a program the state used to identify eligible residents based on their participation in SNAP (Supplemental Nutrition Assistance Program, often referred to as food stamps).
Several states have used similar auto-enrollment programs for Medicaid enrollment, but only for initial enrollment. Louisiana is the first state in the nation to gain HHS approval to use SNAP enrollment to automate the initial Medicaid enrollment process as well as the annual renewal.
The long path to Medicaid expansion
On November 21, 2015, Democrat John Bel Edwards won the runoff gubernatorial election in Louisiana. Edwards supported Medicaid expansion as called for in the ACA, and his win immediately made Medicaid expansion much more likely in Louisiana.
Former Governor Bobby Jindal was emphatically opposed to Medicaid expansion, stating in a 2013 editorial that it would be “bad for Louisiana’s taxpayers and bad for our health care system.” Jindal was not eligible to run in the 2015 gubernatorial race due to term limits, but he has continued to rail against Medicaid expansion, even after leaving office, stating in a Politico article that “Obamacare made millions of able-bodied Americans newly dependent on direct government assistance for their health care” (referring to Medicaid expansion as well as the ACA’s premium subsidies), and expressing his belief that this was a fundamentally bad change.
There was a primary election in October 2015, but none of the four candidates received a majority of the vote. So a runoff election was scheduled for November 21, 2015, with voters deciding between the two candidates who garnered the most votes in the first election (Democratic Minority leader of the Louisiana House of Representatives, John Bel Edwards; and Republican Senator David Vitter).
All four of the primary candidates had previously expressed at least some degree of willingness to accept federal funds to expand Medicaid, although all but Edwards had called for using a section 1115 waiver to craft Medicaid expansion in a state-specific way. Edwards’ support for Medicaid expansion was unequivocal.
In addition, lawmakers in Louisiana passed House Concurrent Resolution 75 in June 2015, which helped pave the way for the expansion of Medicaid. HCR75 allowed hospitals to implement a fee that would generate the revenue needed to pay the state’s portion of the cost of expanding Medicaid (the federal government will always pay 90 percent of the cost, but by 2020, states will be responsible for 10 percent of the cost of covering the expansion population; hospitals tend to support Medicaid expansion, as they face dire budget cuts in states that haven’t expanded coverage). HCR75 gave Edwards until April 1, 2016 to propose a plan to expand Medicaid, but he wasted no time in issuing the Medicaid expansion executive order the day after taking office.
Louisiana HHS Director pushes to keep Medicaid expansion
On January 5, 2016, Edwards named Dr. Rebekah Gee to be the Director of Louisiana’s Department of Health and Hospitals, which is the agency that oversees the state’s Medicaid program. Edwards has said that Medicaid expansion would be one of Gee’s primary tasks, and Gee noted that the state would need to hire almost 250 people to process enrollments and manage the expansion of Medicaid.
Gee also said that Edwards’ administration would focus on working with doctors to ensure that there’s an adequate network of providers who are willing to work with the influx of new Medicaid patients gaining coverage under Healthy Louisiana.
Gee noted that in addition to the state’s portion of the cost of coverage for the newly eligible population, the state also has to pay 25 percent of the cost of hiring the 248 new state employees to handle the additional volume in the Medicaid program. The federal government will pay 75 percent of that cost, but the state’s portion was expected to be $2 million. Gee said that she’s aware of “the budget problem’s that we’re inheriting,” calling them “humbling” but noting that the new administration has plans to deal with the budget issues.
The Louisiana Department of Health and Hospitals has also had to work to ensure ongoing state funding for Louisiana’s charity hospitals, which lawmakers restored in May 2016, despite lawmakers’ concerns that not enough was being done to eliminate waste and contain costs.
Do I qualify for the Medicaid?
Medicaid.gov publishes this guide to help you figure out if you may qualify for Medicaid. As of June 2016, eligibility levels for Louisiana Medicaid are:
- Children ages 0-18: 212 percent of the federal poverty level; children with family income between 212 percent and 250 percent of FPL are eligible for the Louisiana Children’s Health Insurance Program (LaCHIP)
- Adults: 138 percent of the federal poverty level.
Individuals who receive Supplemental Security Income (SSI); who are elderly, blind or disabled; or who meet certain other guidelines also qualify for Medicaid. Visit Louisiana.gov for more information.
How do I sign up for Medicaid?
There are several options for applying for Medicaid.
- You can apply online through the Louisiana Medicaid Online Application Center or at Healthcare.gov.
- You can apply over the phone, toll-free. The number is 1-888-342-6207.
- You can apply in person at a Medicaid application center.
- You can apply by mail or fax. Fill out the application and then mail it to Medicaid; P.O. Box 91278;
Baton Rouge, LA 70821-9278; or fax it to 1-877-523-2987.
The cost of delaying Medicaid expansion
Because Louisiana didn’t expand Medicaid in 2014 and 2015, Governor Edwards’ administration has said that the state missed out on up to $3 billion in federal funding prior to their acceptance of Medicaid expansion in 2016.
The Kaiser Family Foundation estimates that 364,000 low-income adults became eligible for Medicaid under expansion (although the state pegged the number closer to 375,000, and more than 471,000 had enrolled by April 2018). Kaiser also estimates that the previous decision against expansion left 242,000 Louisiana residents in the coverage gap from the beginning of 2014 until mid-2016. Individuals in the coverage gap have income too high to qualify for Medicaid (before it was expanded), but below 100 percent of FPL and therefore they are not eligible for premium subsidies to help them buy private coverage through the health insurance marketplace.
An Urban Institute study found that the state would spend $1.2 billion over 10 years on expansion. Yet over the same period, if Louisiana had continued to reject Medicaid expansion, the state would have lost out on $15.8 billion in federal Medicaid funding and $8 billion in hospital reimbursements. The financial struggles faced by multiple Louisiana hospitals, including the closure of the Baton Rouge General Medical Center emergency room, are attributed at least in part to the state’s previous decision against Medicaid expansion.
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.